![]() ![]() ![]() The key is to make sure your earnings exceed your expenses. This can be achieved with the purchases of properties, businesses or investments like mutual fund or stock. In this stage, players’ objective is to escape from the ‘ rat race’ by generating positive cash flow or ‘ passive income’. Such can be seen as this board game comes in two stages. How? The idea of passive income itself requires more creative thinking to fully grab hold of how it actually works, hence, with the help of this board game you can have a brief idea on how to manage your everyday businesses without much hiccups.Īs stated in his writing of Rich Dad Poor Dad, Robert Kiyosaki incorporates some of his personal findings into this cashflow board game. What’s more, it teaches you a thing or two every time you play it, even after you had played it for a hundred times. This is not only a magnificent board game, but it is also fun to play with. All the teaching conducted by Robert Kiyosaki in this Cashflow 101 board game is about passive income and how to think out of the box. ![]() He encourages self education on the money subject and had a wonderful insight on how to generate more income through the study of financial statement or how to make your money grow with little effort, which will eventually get you out of the ‘rat race’. The primary objective by Robert Kiyosaki in creating this board game is to share his financial knowledge of the Rich Dad Poor Dad ontology. Now players have the chance to experience the greatness of this Cash flow 101 board game in Malaysia. Such can be achieved by practicing the essence of accounting while simulating the financial input or cash flow through risk free setting the money. It is an educational board game that strive to instil the investing ideas into the mind of the player by teaching them how to make their money work for them. but sad to say, your cashflow from this property doesn't change.An excellent creation by Robert Kiyosaki, the renowned author of Rich Dad Poor Dad had landed here in Malaysia many years ago, called the CashFlow 101. if you want to get rid of your mortgage loan from investment property, you just have to pay it off for the whole sum. Furthermore, to simplify the process of CASHFLOW game, you don't have to care about the loan reduction every month. so your principal amount wouldn't change. If you buy property in real life, you will start to realise in the 1st 10 (maybe even more) years, you are not repaying the principal of the loan. therefore you don't have to worry about adding bank loan payment, btw we don't call this bank loan, we call it mortgage loan as it is secured with the property you bought.Ģ) now comes to why the loan is not reduced after month by month you are paying the loan. so in this case for the real property, it is a net profit you get from this property after deduction of mortgage payment (and some other misc expenses). You would have to take a $1,000 bank loan and add $100 to your expense column.īut I think the following answer explained more in details:ġ) Why there is no bank loan payment while there is a mortgage attach with the property?Ģ) Why the mortgage loan is not reduce along the way?ġ) first you need to understand the property you bought, Why the card say Cashflow +$140, why it don't say "income +$140" or "rental +$140"? why cashflow?Ĭashflow means income minus expenses. So, as an example, let's say that you only have $3,000 in cash and you want to buy the deal. You only have to record a bank loan in your liabilities and expense columns if you don't have enough cash to make the down payment in the game with the cash that you have on hand. This is where it gets me, because aren't you supposed to put the bank loan payment in as well? To keep my total expenses down, wouldn't I have keep paying off my bank loan? And wouldn't this in turn lessen my mortgage amount in the liabilities column? Really going round in circles here, cause I looked in the rules book for cashflow 101 at their example. I'm basing this on having just bought the property.Ĭondo Down Pay: 4,000 Cost: 40.000 Mortgage: 36,000 Income Statement Condo Cashflow: 140 ![]() I get the part about where to put everything on the Game Card. Hi there, Can anyone please help me understand paying off your bank loan for a real estate property. There are commonly question ask about paying off bank loans in the Cash flow 101: ![]()
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